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US House renews terrorism insurance act

[JURIST] The US House [official website] has voted to renew the Terrorism Risk Insurance Act of 2002 [PDF text], under which the federal government guarantees insurance coverage for catastrophic losses caused by terror attacks. The House approved H.R. 4314 [bill summary; JURIST report] on Wednesday by a 371-49 vote, moving the legislation to a conference with the Senate, which earlier approved S. 467 [bill summary], a different version of the renewal. The House bill extends the insurance guarantee for two more years, but requires private insurance companies to pay more of the initial costs. The original act was passed in the wake of the Sept. 11 terror attacks to help restore the insurance industry and confidence in the economy. The House bill increases the amount of insurance industry losses that would trigger federal aid from $5 million to $50 million in 2006 and $100 million in 2007. The Bush administration has opposed an extension of the act [JURIST report] that does not emphasize its temporary nature and increase the role of the insurance industry. AP has more.

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